Shares in FTSE 100 wealth manager St James’s Place (STJ) fell 15% on Friday morning on reports it is under pressure from regulators to change its fee structure.
The Financial Times reported on Friday that St James’s Place is facing pressure from UK regulators to change its fee structure, with critics citing “opaque and expensive charges” for financial advice, as well as “stiff penalties” for early withdrawals.
The company’s shares lost £1.22 to trade at £6.96 on Friday, a fall of just under 15%. Year to date the shares are off 36% but this follows a very strong period of outperformance in 2020 and 2021.
St James’s Place says it is “engaging with all of [its] primary regulators during this process” it. It added: “Whilst the evaluation has not yet been completed and therefore no decision has been made, we are confident that all the options under consideration will ensure value for clients and a strong, secure, and sustainable business for all stakeholders. We naturally continue to engage with all of our primary regulators during this process.”
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